On the go: The Pensions Regulator has revealed that a total of 39 master trusts have applied for authorisation, including one new master trust, as it indicates that new master trust schemes will face tougher supervision.
Just six of the 39 master trusts have gained authorisation so far: The BlueSky Pension Scheme, The Crystal Trust, Legal & General WorkSave Mastertrust, Legal & General WorkSave Mastertrust (RAS), LifeSight, and Universities Superannuation Scheme.
Authorisation creates safeguards around master trusts – which have a total of 14m members – by ensuring they are run by fit and proper people and have the right systems, processes, plans and finances in place.
The watchdog’s final update shows that 10 schemes have exited the master trust market so far, and a further 35 have notified it of a triggering event to exit the market and will transfer their members to an alternative master trust scheme or other appropriate vehicle.
New master trusts can apply to enter the market at any time. The regulator said in its update: “They must provide evidence outlining how a scheme will meet the standards in five key areas. New schemes will be more intensely supervised than existing schemes because they will not have an operational track record. High intensity supervision will give these new master trusts the opportunity to demonstrate that they continue to meet the authorisation criteria. “
The Pensions Regulator will publish further information on the consolidated master trust market near the end of 2019, once all existing master trusts have had a decision on their applications for authorisation.
